**Accounting Flow: From Direct Bill Folio to City Ledger Payment

**Accounting Flow: From Direct Bill Folio to City Ledger Payment


Direct Bill accounting follows a predictable sequence—from posting charges on a guest folio to reviewing fully paid invoices and payments in the City Ledger. Understanding this flow helps accounting and front desk teams know where a charge lives at each stage, what actions are available, and how to correct or review activity when needed. This article walks through the full Direct Bill accounting lifecycle and mirrors the process shown in the visual flow diagram.
The diagram below shows how Direct Bill charges move from a guest folio through invoicing, payment, and historical records in the City Ledger.


Step 1: Room Folio (Direct Bill)

The process begins on the guest’s room folio.
  1. Charges are posted to the folio using a Direct Bill (DB) payment method.
  2. At this stage, the balance exists only on the guest folio.
  3. No invoice has been created yet.
Notes
Available action:
  1. Transfer Folio: Move Direct Bill charges to create an invoice.

Step 2: Invoice Created

When Direct Bill charges are transferred, an invoice is created.
  1. The invoice represents the charges moved from the room folio.
  2. This step converts folio activity into an accounts receivable record.
  3. The invoice is now associated with a City Ledger account.
Notes
Available actions:
  1. Transfer Folio: Transfer additional Direct Bill charges if needed.
  2. Reprint Invoice: Generate a copy of the invoice for review or sharing.

Step 3: Account Detail (City Ledger)

Once created, the invoice appears in the City Ledger account.
  1. The invoice is visible in Account Detail.
  2. This view shows open, partially paid, or fully paid invoices.
  3. From here, users can review invoice balances and history.
Notes
Available action:
  1. Reprint Invoice: Access invoice copies directly from the account.

Step 4: Payment Applied

Payments are applied to invoices from the City Ledger.
  1. One payment can be applied to one or multiple invoices.
  2. Applying a payment reduces or clears the invoice balance.
  3. Invoice status updates based on the payment amount.
Notes
Available actions:
  1. Reprint Invoice: Print updated invoices showing payment activity.
  2. Unapply Invoice: Remove a payment from an invoice if correction is required.

Step 5: Invoice and Payment History

After invoices are fully paid, records move into history views.
  1. Invoice Listing History shows fully paid invoices.
  2. Payment Listing History shows fully applied payments.
  3. These views are read-only and used for audit and reference purposes.
Notes
Available action:
  1. Unapply Payment: Reverse a payment if adjustments are needed.
Info
Key Takeaways
  1. Direct Bill accounting follows a linear flow: Folio → Invoice → Account → Payment → History.
  2. Optional actions (transfer, reprint, unapply) are available only at specific stages.
  3. Knowing the current stage helps determine which tools and corrections are possible.

Still Need Help With This Topic?

Ask yourself:
  1. Is the charge still on the room folio, or has an invoice already been created?
  2. Has the payment been applied to the correct invoice?
  3. Am I looking for an open invoice or historical records?
Support may ask you:
  1. The guest name or folio number
  2. The City Ledger account name
  3. Whether the invoice or payment has already been applied or unapplied
  1. Print/Create City Ledger Invoices (Cloud)
  2. Reprint a City Ledger Invoice (Cloud)
  3. Post a Payment on a City Ledger Account (Cloud)
  4. FAQ - Accounting / City Ledger